Medi-Cal cut approved

A federal court upheld California’s right to impose a 10 percent rate reduction on the state’s providers of Medi-Cal services.

The U.S. Ninth Circuit Court of Appeals lifted injunctions on implementing the controversial cut to hospitals, physicians, dentists and emergency transport, according to California Healthline. The state legislature passed the10 percent reduction in 2011 in reaction to a huge budget shortfall, but the cut was put on hold while the court case was resolved. While the cut will save California about $600 million a year, many have raised fears that if provider rates dip too low, providers will stop accepting Medi-Cal patients.

“The state’s efforts to cut reimbursement rates will harm patients’ oral health and their ability to access care at a time when California is trying to recruit more providers into the system,” said Lindsey Robinson, president of the California Dental Association.